SPH - Better Buy: Tellurian vs. Suburban Propane Partners
In the world of gas stocks, you'll find plenty of companies of all shapes and sizes. But you'd probably have to search this corner of the energy industry pretty hard to find companies in this sector more different than Tellurian (NASDAQ: TELL) and Suburban Propane Partners (NYSE: SPH).
Even though they're very different companies, they're worth comparing. Let's see which of these gas companies looks like a better bet for investors.
Suburban Propane Partners has been around since 1945 and is, essentially, a delivery service. The company distributes propane to residential and commercial customers to use for heating. Since it's not involved in drilling for the natural gas liquids or refining propane out of them, it's not usually affected by swings in commodity prices. The business model is fairly straightforward and time-tested: Suburban buys propane from a refiner, then turns around and sells it to customers and pockets the difference.